1. Field of the Invention
The present invention relates to a system and method of digital content distribution that provides a unique business model by which publishers and retailers can select, respectively, retailer product channels and content titles. The present invention also relates to a system and method of abstract fulfillment of a product request at a retailer from a consumer that is transparent to a publisher, allowing for dynamic retailer-specific rebranding of the product and only a one-time upload of the product by a publisher to an open, neutral electronic distribution platform that can provide third party verification to the publisher of a transaction between the retailer and the consumer for that publisher's product.
2. Description of the Related Art
Consumers have come to expect the immediate gratification of downloading digital content. Today's $3 billion electronic software distribution (ESD) market is expected to triple by the end of the decade. But until now, publishers have not had a trusted or efficient way of fully leveraging this growing ESD market. Publishers might be selling digital content directly to consumers, but they are missing out on the 80% of consumers shopping at online retailers. A need exits for ways publishers can provide digital content to retailers to extend their reach and increase sales that overcomes existing problems with trust, management and scalability.
More specifically, there currently exists a massive untapped opportunity to leverage multi-channel distribution networks online. ESD can bring significant benefits to consumers, software publishers and online retailers including: increased product reach and availability, quicker time to value, and lower cost of transaction. The value of ESD is not being realized, however, because ESD is not efficiently integrated into indirect, efficient retail channels.
Publishers want to provide digital content to retailers to extend their reach and increase sales. They can send a “gold master” to each reseller, but there are issues with trust, management and scalability. Alternatively, the publisher can host its own bits, but it is difficult for retailers to scale to multiple publishers and products. Publishers do not have a trusted, open, efficient, ESD solution to reach the aggregate of consumers shopping at online retailers that also provides them with technology-based, third party transaction verification. Retailers do not have a non-competitive, integrated, broad-inventory solution to offer ESD as part of their customer's shopping experience. Current outsourced ESD options are not satisfactory for the retailer or the publisher. Neither party has the opportunity to differentiate their product to enhance sales. In addition, ESD is competitive to the retail channel and not integrated into retail customers' purchasing experience, which means the retailer loses the ability to manage the customer relationship and to up-sell/cross-sell. Consumers may also be more likely to abandon their shopping carts, since they have to make separate purchases for digital content. For the publisher, since the outsourced option is also the merchant of record, they do not have technology-based trusted third party verification for their digital transactions. Thus, a need exists for open, neutral and efficient online digital content distribution that connects content publishers with online retailers, fosters stronger working relationships, and provides a non-competitive, hosted platform that offers real-time inventory management, extended reach, and neutral third party verification for the secure packaging and delivery of digital content.
Publishers currently do not have choices for fully leveraging the internet for content distribution and are therefore limiting their reach and revenue opportunities. Bits are replicated on each sale which necessitates a trusted, technology based audit trail or transaction verification for digital content to ensure that publishers are paid for what is sold. Today, it is not cost-effective, scalable, manageable or efficient for publishers to prepare and manage different versions of their gold masters for each title and for each retailer. Publishers are paying much heavier margins and/or fees, in excess of 50%, through e-commerce service providers and affiliates or by fulfillment of traditional boxed goods. Publishers only have access to a small percentage of online buyers for their digital content. 80% or software sold online is through indirect retail channels who are not participating in ESD today. Thus, a need exists for a system to overcome such disadvantages experienced by publishers.
Retailers currently do not have a way to fully participate in ESD other than plugging into a separate store and disrupting their customer experience or building it themselves. Retailers have and want to maintain their customer relationships and offer an integrated shopping experience. For example, a need exists to maintain control and loyalty of customers at all times. Further, retailers want to leverage up-sell and/or cross sell opportunities. It is currently difficult for retailers to build inventory of digital content. For example, they desire to be able to plug into a maintained catalog of inventory and need to have current product-level merchandising information. Retailers want to take advantage of the extra touch points provided by the ‘try before you buy’ environment. Thus, a need exists for a system to provide retailers such advantages and opportunities and more.